Santhera Pharmaceuticals Holding AG (VTX:SANN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Santhera Pharmaceuticals Holding AG, a specialty pharmaceutical company, together with its subsidiaries, develops and commercializes medicines for rare neuromuscular and pulmonary diseases with high unmet medical need in the European Union and internationally. The CHF68m market-cap company posted a loss in its most recent financial year of CHF56m and a latest trailing-twelve-month loss of CHF65m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Santhera Pharmaceuticals Holding will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Santhera Pharmaceuticals Holding

Santhera Pharmaceuticals Holding is bordering on breakeven, according to some Swiss Biotechs analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of CHF26m in 2024. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 59% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Santhera Pharmaceuticals Holding's upcoming projects, though, bear in mind that typically a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Santhera Pharmaceuticals Holding is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

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There are too many aspects of Santhera Pharmaceuticals Holding to cover in one brief article, but the key fundamentals for the company can all be found in one place – Santhera Pharmaceuticals Holding's company page on Simply Wall St. We've also put together a list of important factors you should look at: